The Importance of Maintaining a Mindset of Growth

The 21st century’s management hierarchy must acknowledge a need to change based on methods that have been unsuccessful, or have remained stagnant for too long with little to no movement or growth. When improvement of any organization, large or small, is needed, it’s an understanding of a growth mindset that can move efforts in the right direction.

Decades ago, the common belief was that you needed to get a job, work hard and keep your head down, and you would be rewarded. Times have changed, as have job requirements and expectations. Employees are still expected to do their jobs, but they’re also expected to bring innovation and problem-solving to the table. When it comes to developing new products and processes, though, most organizations are insufficient in defining the problem they want to solve, and in clearly expressing why the issues are important. “Our ability to understand people’s experiences will be key to the future of our companies,” Mike Walsh, a futurist speaker, said. “We need to think big, think new, but most importantly think quick. The future is now.” Walsh spoke at a past conference hosted by the California and Nevada Credit Union Leagues.

The workplace has changed significantly over the past half-century due to the constant evolution and development of complex information technologies, and the automation of existing processes. What will be the cost of such change? What can be done to prepare for more changes? Systems will continue to be developed to increase the rate at which information passes, while the importance of information will become the ultimate factor in the marketplace. In order to remain competitive, organizations will need to keep pace and remain current with information technology, and recognize how it relates to workflow and productivity. To comply with the technology changes, communication with staff and members should be a top priority, as well as required learning. This is all part of having a growth mindset.  

To build high performance across the organization, managers should encourage and promote a growth mindset among all employees. Are today’s employees ready for the impact of artificial intelligence and automation? To answer that, employees must have the leadership to guide them forward, and the internal drive to keep pace with changing expectations and organizational growth. The mindset for leadership and management in any organization should be such that in order to become a great leader, the leader must unlock employee potential and inspire a creative corporate culture by embracing a growth mindset. What drives success (or failure) is how leaders both think and act, and whether they believe they still have room for growth and learning. If a leader does not believe they can improve or grow, team failure is imminent.

According to Deloitte, “Credit unions that fail to adopt an aggressive, sustainable growth-oriented mindset risk losing competitive parity on the products and services they provide to their members and significantly limit the investments they can make in their organizations, members and communities. Rather than being a betrayal of the cooperative system, planning for and achieving sustainable growth is one of the most important activities that a credit union can undertake to maximize member value and live its cooperative principles.”

Virtually all good leaders believe that to stay competitive, their enterprises must learn and improve every day. But even organizations praised for their dedication to continuous learning find challenges in always practicing what they preach. According to an Ernst & Young Survey and Forrester Inc. research report, “Financial Service Brands Fail to Earn True Consumer Trust,” “Financial service brands have long suffered from a lack of consumer trust, but the 2008 financial collapse undermined the brand relationship. Difficult as the road is, financial service brands must strive to secure brand trust to build their brand. One of the key drivers of earning back customer trust is through superior personalized product offerings. High quality products that meet customer needs are a key driver of trust in financial services.”  

Embracing growth mindset leadership allows for new ideas and approaches to providing improved services or products. A growth mindset allows people to take responsibility for their lives. It builds better relationships with managers and employees that are creative and engaging.

Credit unions are known to be conservative in the areas of innovation and change, and it has been the practice for years to “stay the course” as a philosophy. While it is important that the consistent message to members be that their money is safe, the current times call for louder, bolder and more dynamic messages, too. For instance, when it comes to increasing credit union membership, a conservative approach is not the appropriate or successful route. Perhaps it is time to think differently, like one bank that identifies with the slogan of “#bankingreimagined.” As Capital One said, “We’ve learned a lot of things from talking to our customers over the years, and one of the most profound isn’t about money at all: People just want to be listened to. We’re focused on creating a better bank – one that is built around you – and that starts with truly listening.” In order for the credit union movement to grow, and attract the valuable millennials, the growth mindset concept needs to be embraced and put to work. Change is difficult and scary, but almost always reaps the greatest results. Change is necessary.

Successful businesses create teams that are built for success. According to the late management consultant Peter Drucker, “Leadership is the lifting of a man’s vision to higher sights, the raising of a man’s performance to a higher standard, the building of a man’s personality beyond its normal limitations.”

Norman Halls is former Chairman of the Board for Arrha CU and Director for Norhals Group, LLC. He can be reached at halls@norhalsgroup.com.